APL receives LOI to develop 1320MW power project in India

Adani Power Limited (APL) has been awarded a letter of intent (LOI) by the Government of Madhya Prad

As per the LOI, 300 hectares of land, presently in possession of Madhya Pradesh State Electric Board along with the infrastructure facilities, will be transferred to APL. The first unit of 660MW will be commissioned within a period of 42 months from the date of the LOI. In addition, the MPgovernment energy department will support and make recommendations to the Government of India for obtaining coal linkage and captive coal block for the project.

The Government of MP has reserves of water required for this project from Pench river. As per the LOI, 10% of the net energy generated from the project will be supplied by APL to the state government at a cost to be determined by the appropriate commission. The MP government has the first right to purchase power up to 40% of aggregate capacity of the project for a period of 20 years.

Gautam Adani, chairman of Adani Group, said: "We are pleased to receive this LOI from the MP government which reflects their faith in Adani Group's capability to implement this project. With the addition of this project, total generation capacity would cross 13,000MW which is in line with our shared vision to put up 20,000MW by 2020."

APL, along with its subsidiaries, is developing power projects including 4620MW at Mundra in Gujarat, 3300MW at Tiroda in Maharastra, 1320MW at Kawai in Rajasthan and 2640MW at Dahej in Gujarat totaling to 11,880MW.